5 ms·

As a Tesla optimist, it seems like their biggest constraints are cash and the distraction of quarterly earnings calls with analysts. Apple could use that huge s

As a Tesla optimist, it seems like their biggest constraints are cash and the distraction of quarterly earnings calls with analysts. Apple could use that huge stockpile of cash to allow Tesla to continue playing the long game, without having to worry about their stock price fluctuating every day.

Shivetya 7y ago
Well I would expect Apple's biggest contribution would be better supply chain management, product focus, and UI improvements. Tesla suffers from Musk's lack of focus. There are well past the time someone who is not a product person provide some structure to operate within.
- mft_ 7y ago
  From what I've read, totally agree: they need a strong COO to focus on delivery. A Gwynne Shotwell or --funnily enough-- a Tim Cook of old. (It's odd that Elon presumably sees the benefit of Gwynne at SpaceX yet doesn't replicate the formula at Tesla.)
tyre 7y ago
And you would think Elon could still be given free reign, but I suspect he would reject this out of hand because he wants to stay in absolute control. We obviously don’t know everything behind this, but Tesla’s in perpetual turmoil internally and externally. They’ve done incredible things and at the same time put that in jeopardy. Elon has huge upside but can be his own worst enemy at times (get the fuck off of twitter)
- dangero 7y ago
  Apple can't buy Tesla and let Musk have free reign because it will expose them to potential liabilities much larger than their investment in Tesla. Example: -Stock manipulation would now be manipulation of Apple stock. -Autopilot related deaths and quality issues now create lawsuits against Apple's bank account and reputation.
  - xkjkls 7y ago
    Theoretically that depends on the deal. There are ways to have financial ownership without assuming all the liabilities
dwighttk 7y ago
That's assuming Tesla has something Apple can't get elsewhere with the cash.
kovek 7y ago
Why would Elon Musk worry about the stock price fluctuating? How is the company affected by the stock price? The only thing I can think of is as follows: When the company needs liquid capital, they sell shares that they already own, and in that case a higher stock price is more beneficial.
- xkjkls 7y ago
  They also pay their employees using a large amount of stock. A poorly performing stock means poor morale and more difficulty recruiting.
xkjkls 7y ago
Well, cash and a distraction of earnings calls is a symptom of the real problem, weak demand. The 3 has been cannabalizing the S and X, which before were the major high margin products that sustained the company. If they have to keep raising cash just to keep themselves afloat, there’s never going to be any return for shareholders. It will all get eaten by debt and dilution.

Shivetya 7y ago

Well I would expect Apple's biggest contribution would be better supply chain management, product focus, and UI improvements. Tesla suffers from Musk's lack of focus. There are well past the time someone who is not a product person provide some structure to operate within.

mft_ 7y ago
From what I've read, totally agree: they need a strong COO to focus on delivery. A Gwynne Shotwell or --funnily enough-- a Tim Cook of old. (It's odd that Elon presumably sees the benefit of Gwynne at SpaceX yet doesn't replicate the formula at Tesla.)

tyre 7y ago

And you would think Elon could still be given free reign, but I suspect he would reject this out of hand because he wants to stay in absolute control. We obviously don’t know everything behind this, but Tesla’s in perpetual turmoil internally and externally. They’ve done incredible things and at the same time put that in jeopardy. Elon has huge upside but can be his own worst enemy at times (get the fuck off of twitter)

dangero 7y ago
Apple can't buy Tesla and let Musk have free reign because it will expose them to potential liabilities much larger than their investment in Tesla. Example: -Stock manipulation would now be manipulation of Apple stock. -Autopilot related deaths and quality issues now create lawsuits against Apple's bank account and reputation.
- xkjkls 7y ago
  Theoretically that depends on the deal. There are ways to have financial ownership without assuming all the liabilities

dwighttk 7y ago

That's assuming Tesla has something Apple can't get elsewhere with the cash.

kovek 7y ago

Why would Elon Musk worry about the stock price fluctuating? How is the company affected by the stock price? The only thing I can think of is as follows: When the company needs liquid capital, they sell shares that they already own, and in that case a higher stock price is more beneficial.

xkjkls 7y ago
They also pay their employees using a large amount of stock. A poorly performing stock means poor morale and more difficulty recruiting.

xkjkls 7y ago

Well, cash and a distraction of earnings calls is a symptom of the real problem, weak demand. The 3 has been cannabalizing the S and X, which before were the major high margin products that sustained the company. If they have to keep raising cash just to keep themselves afloat, there’s never going to be any return for shareholders. It will all get eaten by debt and dilution.